The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Thanks Brad but I think you have posted the article for the wrong type of coal. That 14% is for coking coal not thermal coal.
However, next to your posted article, we have the right type of coal 'China thermal coal prices rise after falling for 10 days' closing up $152.
BEIJING/SINGAPORE, Nov 3 (Reuters) - China thermal coal futures rebounded on Wednesday after falling for 10 days on an expected jump in fuel demand to meet heating needs amid forecasts for plunging temperatures.
https://www.reuters.com/business/cop/china-key-power-plants-coal-inventory-rose-19-days-by-end-oct-media-2021-11-03/
Thanks Seible for posting the FT article. I'm particularly intrigued at our 'bumper profits':
At Thungela, Ndlovu says the company will use bumper profits to reward shareholders “who have come with us” and also extend the life of its seven collieries in South Africa so it can manage its eventual closure liabilities, which short seller Boatman Capital claims have been massively understated.
“We have had some very interesting support from overseas investors?.?.?. who understand the fundamentals of coal and realise that while the [energy] transition is going to happen it’s not going to happen as quickly as everyone in the western world is shouting that it will be,” he said.
Here's to BUMPER PROFIT TO REWARD SHAREHOLDERS!
I believe the FOB costs are $51 so anything above this is a profit to TGA. I think a normalised cost of coal should be around $90 when it was fairly level / on a steady rise earlier this year. Coal price above $90 is a bonus.
Just wondering how much of this profit will actually translate to the 30% divi?
Ahhh. Good 'ol Uncle BEN. Have never let me down yet...never a day in the red zone!
Here's hopin' when markets open again tomorrow after today's sea of red, it's onto the next level up!
BEN staying resilient and rising from the early morning ashes and bouncing off positive territory. It's been doing that a few time. Shaking the tree? Need to break through the 22p barrier now!
Whilst thermal coal is down 30%, I believe coking coal is around $339 so still well above the assume RNS cost of $277.
China coking coal prices pressured lower by freeing-up of previously stranded Australian material
Previously stranded Australian coking coal has started to affect the seaborne coking coal cfr price; seaborne prices in the fob market were relatively stable, sources said.
Fastmarkets indices
Premium hard coking coal, fob DBCT: $405.28 per tonne, up by $0.69 per tonne
Hard coking coal, fob DBCT: $339.84 per tonne, down by $1.50 per tonne
I think this drop is due to the tumble of coal from $218 29th Oct to today @$142.
GC Newcastle coal futures tumbled by over 30% to $150 per metric ton, the lowest in three months, and are more than 40% below a record high of $269.5 hit on October 5th, as China stepped up policies to boost output ahead of the winter season. China’s average daily output increased by over 1.2 million tonnes to a record at above 11.6 million tonnes on October 18th. As a result, Chinese power plants now have stocks to produce power for 16 days from less than two days’ inventories at the start of October.
You've gotta be kidding me! ATC was one of the shares I invested back in my early days of swimming the murky waters of investing! I feel like I'm investing in the same company again?
It's like the rise of a phoenix! Can it be bigger and better? At least BEN isn't starting from scratch. I think we should be safe for the next 6 months...
With the start of COP26 and all these good news on hydrogen, ITM is about to breach the £5.20 resistance level. Let's hope they can make some Contract announcements on the back of these interests. Come on!
Wow, already bounding off 25p this morning! Great fuel from the RNS last week!
Here we go again!
Looks like the SP wasn't actually tracking the downward price of gas...it was tracking the insider news!
Let's hope on the announcement of production of Columbus it goes back to it's normal upward trajectory.
Thanks gwp but I think it's a different type of coal to what BEN is selling.
Thermal coal is what Adam calls 'dirty' and cheaper coal that is use to to burn at power station for energy. Thungela sells this type of coal. This is currently @$233/t.
Whereas BEN sells metallurgical coal mainly use to produce steel cause it is of a higher quality and currently selling around $344 (I think but can find prices easily on this coal).
Anyway, seeing EUA behind BEN in the top risers today as they crank up for the release of some news...maybe the log await JORC?
Positive AGM today then? The SP has been ticking up since 10:00.
I was just joking about the spare coal.
Yeah I know they provided some intel on what the costs should be. But with such a good RNS, they could just highlight the cost range. Neverthless, I guess we will have to do with "The sales price will be calculated, subject to a volume discount, using a formula linked to the 20 day average price prior to assignment of the product to Integrity." Am I right in seeing that met coal is now @$344 (which is higher than the previously quoted $305)?
I can see Coggy grinning now that 18p is behind us. Onwards and coal blasting up past 21p now!
Great news. This is just double what they agreed on and on track to product 500k of coal pa. BEN said they would be starting in Nov and they now have agreement to do that for the next year. Then it's 1 mill the following year and then 2 mill the year after. So much more to look forward to.
But it's a bit strange why the RNS didn't actually say what the agree fixed price of sale was.?
Wonder what they will do with the spare bit of 18k coal? Maybe give it away to the locals? Hohoho!
UK commitment didn't really propel our stocks did it?
At least 30,000 new jobs will be created around the UK thanks to £9.7 billion of new foreign investment due to be announced by the Prime Minister at the Global Investment Summit today (Tuesday 19 October 2021).
The package of 18 deals will support growth in vital sectors such as wind and hydrogen energy, sustainable homes and carbon capture and storage, cementing the UK’s climate leadership for COP26 and beyond.
https://www.gov.uk/government/news/investors-pledge-almost-10bn-at-uk-global-investment-summit
I think Google and Investing websites provide you with live prices. Whilst most others gives 15mins delay. So when using these apps, the prices if already behind!
Seems like SQZ is following the downward trajectory of gas prices. It was 275p/therm on 5th Oct and now its down 218p/therm.
"UK Natural Gas futures traded around 217 pence a therm, having touched a record high of near 408 earlier in October, as supply concerns eased slightly after Russia’s President Putin said Gazprom may increase supplies to help Europe. Cold weather, a surge in global energy demand and dwindling supply from Russia have triggered a spike in gas prices in recent months. The UK is particularly exposed to the risk of shortage amid limited storage gas capacity after the closure of its Rough storage facility owned by Centrica in 2017, forcing the country to rely more on pipeline and liquified natural gas imports."
https://tradingeconomics.com/commodity/uk-natural-gas
I topped up yesterday in the drop thinking £2.3 was a good entry point but now gutted this has fallen past £2.1. Wish I had more funds to buy now!
I'm invested because of the Sept RNS. Reminder of some of the highlights:
"In the current environment Serica's focus on gas production and investment in new projects is expected to generate very significant returns for shareholders and help support further investment.
We expect first production from Columbus in Q4 this year and then Serica's share of receipts under the BKR Net Cash Flow Sharing mechanism increases from 60% to 100% on 1 January 2022.
· Rhum R3 well workover completed and commenced production in late August 2021. Columbus production well drilled and tied into the export system ready for first production in Q4.
· 2020 dividend of 3.5 pence per share (2019: 3 pence per share) paid in July. The level of dividend for 2021 will be reviewed in light of the strong gas price trends currently unfolding in the second half of this year.
Pretty much all positive news coming in Q4.
In case anyone has missed this, Freetrade article rating ITM ahead of the other 2 hydro companies.
"One of the frustrating parts of writing about a company like ITM is that you can see how they could do well and, given the environmental benefits their products offer, you may even want them to succeed — regardless of whether or not you’re an investor.
Still, the company remains something of a speculative play. We don’t know what the future of green energy will be or what role ITM will have in it.
Yes, it may do extremely well but it might actually be running into the exact opposite problem Boohoo is dealing with. Green energy is one of the most popular sectors with ESG-focused investors but sooner or later the profits need to back up the long-term case for the company and the industry."
Full article here: https://************/news/top-five-aim-stocks-on-freetrade